Subscribe to receive this FREE daily commentary directly in your email
1/12/21
Stocks – URBN, ZM, LMND, WFC, GM
Macro – IWM
Mike’s Reading The Markets (RTM) Premium Content – FREE 2-WEEK TRIAL
- Midday – The Equity Market Doesn’t Care About Higher Rates, For Now.
- Morning Note- Time To Feed The Ducks
- RTM Option Analysis – Zoom Faces Further Losses
- Midday – Is Something Changing?
- Morning Note – Risk Turns Off As Bitcoin Gets Crushed
- T.W.A. – Gamma Speculative Squeeze May Push Stocks Higher
It was a flat day for the S&P 500 and the NASDAQ 100, but the Russell had the big day up nearly 1.8%. The Russell had some big movers today, with Penn National and Plug Power moving up sharply. PLUG is on the most shortest list so, perhaps a good portion of these moves are driven by short-covering, trigger by positive news, like PLUG today.
Russell (IWM)
Since the beginning of November, the Russell is up almost 38%, and clearly, that is in the hope more stimulus will benefit these smaller companies the most. It is worth noting that the NFIB Optimism Index fell to 95.9, its lowest level since October 2016, if you omit the pandemic period.
The Russell is extremely overbought on an RSI and Bollinger band basis. There is a gap to fill down around $196 on the IWM.
Zoom (ZM)
Zoom jumped by 5% today, which seemed kind of surprising given they announced a secondary this morning. I will be curious to see how the deal prices and demand looks. Based on the stock’s performance over the last several weeks, you would never know that the stock was in high demand. If the deal goes well, it could put a floor in the stock. The gap was nearly filled this morning at $325 when the stock got to as low as $331. (Paid Subscriber Content on SA market place – RTM Option Analysis – Zoom Faces Further Losses)
Urban Outfitter (URBN)
In an article today, I noted some bullish options betting in Urban Outfitters yesterday. The stock has had a powerful performance in the last couple of days. After the close today, the company reported disappointing comparable sales for November and December and a change at the CEO level in one of their brands. The stock is falling in the after-hours, to my disappointment.
It could fall all the way back to $24.85, and the bullish pattern in the stock would still be intact, so the next day or so will be telling. (Should be free to read – Urban Outfitters Stock May Be Poised For A Big Breakout)
Lemonade (LMND)
Lemonade also announced a secondary filing to sell for holders and the company. The stock was down around 5% today and managed to hold support around $167.50 when it was tested. Again, the pricing will be important for us to get a sense of the next move. (Should be free to read – The Lemonade Squeeze Grows More Insane)
GM (GM)
GM had a great day, rising by over 6%; I still think it can rise further. Remember it was last week, we saw some bullish betting and noted the flag pattern. I guess the options guys still get it right from time to time, despite the disappointing URBN play. (Should be free to read – General Motors’ Stock May Be Ready To Surge Higher)
Wells Fargo (WFC)
One stock that loves the rising rate environment is Wells Fargo. The stock was up again today, and the next level to watch for comes around $36.50. (Should be free to read- Wells Fargo Could Climb Even Higher)
Have a good one.
Mike
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.
Subscribe to receive this FREE daily commentary directly in your email
This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
Liquidity Tightening And Volatility Patterns Suggest Risk Ahead
Mott Capital's Market Chronicles September 19, 2025 1:26 PM